April 14, 2025
Food security is one theme BCI’s Infrastructure & Renewable Resources (I&RR) team continues to see as an opportunity – for both the communities served by the food producers, and the investors backing their growth and innovation. Costa Group is a great example of how high-quality produce farming can be combined with leading edge harvesting and distribution innovations to ensure peak production and global reach.
In 2024, BCI’s I&RR program made a significant investment in Costa Group – a leading global grower, packer, and marketer of fresh fruits and vegetables, based in Australia. The take private transaction completed by a consortium formed by BCI, Paine Schwartz Partners and Driscoll’s, valued Costa at approximately A$2.5 billion and reflects BCI’s continued strategy of geographic and sector diversification. Costa Group, with over 120 years of history, has established itself as an integral part of Australia’s produce industry, particularly known for its contributions to berry production and innovative plant varietals.
Costa Group’s operations are extensive, spanning approximately 8,000 planted hectares of farmland, 40 hectares of glasshouse facilities, and three mushroom growing facilities across Australia. The company’s international presence includes majority-owned joint ventures in Morocco and Asia, covering about 750 planted hectares. With a workforce of over 10,000 employees, Costa Group has positioned itself as a leader in five core categories: berries, mushrooms, glasshouse-grown tomatoes, citrus, and avocados.
The Investment Opportunity
BCI sees many opportunities for Costa to continue its growth trajectory by capitalizing on the company’s expanding international footprint, leadership in high-value crop production, and use of innovative farming practices. Importantly, Costa’s geographic and product diversification reduces weather and climate related risks, ensuring more stable production and supply chains. BCI also sees significant potential in Costa’s partnerships with Driscoll’s Inc., the world’s largest berry marketer. This collaboration supports Costa’s rapidly expanding international berry operations through joint ventures in Australia, Asia and the Americas. By investing in Costa, BCI has strategically expanded its portfolio of Australian and renewable resource investments, while supporting a company that exemplifies innovation and resilience in agriculture.
Innovation in Practice
Costa Group’s success is underpinned by its focus on innovation and technology. The company has implemented artificial intelligence across several of its berry crop farms, measuring 14 variables such as rain, light, wind, temperature, and soil in real-time. This AI-driven system creates localized predictions of berry production and optimized harvesting dates, allowing Costa to better manage labour and logistics costs. Used in covered agricultural poly tunnels, this technology enables Costa to create ideal growing conditions for optimal crop yields.
The company’s commitment to innovation extends to its harvesting methods. Costa is also exploring the use of smart robots for berry harvesting, which can detect ripeness and pick berries at optimal times, ensuring the freshest products with minimal waste. These robots are capable of harvesting berries as fast as, or faster than, traditional methods.
Costa Group’s forward-thinking approach is further exemplified by its recently launched Innovation Centre at its glasshouse facility in New South Wales. This 4,000 square metre facility is currently testing nearly 30 new types and varieties of produce, including popular items like cucumbers and innovative new fruit and vegetable varieties. This investment in research and development underscores Costa’s commitment to diversifying and extending its product offerings, promising exciting developments for both domestic and export markets in the future.
Costa has also been recognized for its move towards more sustainable food packaging, and has won numerous awards for packing innovation. This includes for their recycled paper grape packaging, which uses a paper mesh front, allowing people to see the fruit inside the bag from all angles without the use of plastic. And through the use of unique QR codes, Costa now enables its end customers to trace the precise farm avocados were harvested from, and receive tips on storage and recipes.
As Costa Group continues to evolve, its focus on innovation and technology will remain an important part of its growth strategy. With ongoing partnerships and investments in cutting-edge farming solutions, BCI believes the company is well-positioned to continue growing its operating footprint and global reach.
Interesting Insights
In November 2023, Costa grew the world’s largest blueberry – measuring nearly 4 cm wide, and weighting 20.4 grams (nearly six times the average blueberry). The berry was grown at a Costa berry farm in Corindi, New South Wales, Australia.
[Information as of April 2025]
